Ethereum (ETH) Price Analysis – ETH Bounces Back At $140, Can This Support Hold?

12 December 2019 | Updated: 12 December 2019

From $150 this week, Ethereum fell sharply to $139 after recording 8% loss. Following a small recovery, ETH is currently priced at $143 with a total market cap of $15.6 billion and a volume valuation of $7.5 billion. Ethereum is still trapped in a six months bearish trend and has continued to rally downward for that past five days now. Against Bitcoin, the bearish momentum has remained significant.

Ethereum (ETH) Price Analysis: Daily Chart – Bearish

Key resistance levels: $150, $159
Key support levels: $140, $133, $125

Ethereum is still captured in the six months descending channel on the daily time frame. The price of ETH is more likely to remain under the bear radar until a channel break-up occurs. As of now, Ethereum is forming a bearish pattern which might trigger a price drop to $133 soon, although $140 support is still holding. It would become severe if the bearish extension reaches $125.

ETHUSD, Daily Price Chart – December 12.

In the opposite direction, there’s a close resistance for the buyers at $150, although Ether may reach $159 if the buyers can regroup well. From a technical perspective, the sellers have an upper hand in this trade. From all indications, the price is currently weak on the technical indicators, suggesting that the bears may stay longer in the market than expected.

Ethereum (ETH) Price Analysis: Hourly Chart – Bearish

Since December 9, Ethereum has been trading on a downward range with a strong bearish setup on the hourly chart. The weakness in price is causing a lot of bearish scenario in the market. After touching $140 today, Ethereum has managed to recover back to a current price of $143. A possible rejection at $144 is likely to send ETH back to $140. A new weekly low may be created at $137 and $133 if the price drops beneath $140.

ETHUSD, Hourly Price Chart – December 12

On the other hand, Ethereum may resume bullish if the buyers can surpass the white descending trend line. We can expect buying pressure towards the $147, $150 and probably $152 resistance. As shown on the MACD, the ETH market is trying to recover from the negative zone. The RSI is currently facing the 50 levels. Breaking this level would confirm a short-term buy.

ETHEREUM BUY SIGNAL

Buy Entry: $142.5
TP: $149
SL: 139.5

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Michael Fasogbon

Michael Fasogbon is a professional Forex trader and cryptocurrency technical analyst with over five years of trading experience. Years back, he became passionate about blockchain technology and cryptocurrency through his sister and has since been following the market wave.